Google to Build Internet Payment Service

Google’s Chief Executive Eric Schmidt confirmed in press accounts that the company would roll out a payment service, but he denied that it would directly compete with Pay Pal.

“Mr. Schmidt said Google didn’t intend to offer a “person-to-person, stored-value payments system,” which many people consider a description of PayPal’s service.” However, Jeff Jordan, the head of Ebay’s Pay Pal online payments unit isn’t buying it.

“Mr. Jordan says he and his team immediately “dissected the wording” of Google’s statements. He says he doesn’t believe Mr. Schmidt. In the past, Mr. Jordan says, Mr. Schmidt had denied Google would roll out a payments service, only to take it back later. “We took [the comments Mr. Schmidt made] as ‘Thou doth protest too much,’ ” says Mr. Jordan.”

The service, called GBuy, will feature an icon posted alongside Adsense ads that Google hopes will tempt consumers to click. It will also allow consumers to store their credit card information.

It seems that Pay Pal is yet another of the long line of buisnesses that are growng more and more terrified of the Google juggernaut.